International Journal of Value Chain Management (20 papers in press)
S-SMILE model: a leveraging mechanism to polarise performance in small and medium enterprises An empirical study
by Saravana Kumar Ayannan, Venkatesh Babu R, Paranitharan K.P
Abstract: The economic development of a country is mostly based on manufacturing industries, wherein the role of the SMEs in manufacturing industries is considered to be more vital. The SMEs, which mostly depend on large manufacturing industries, are not able to sustain, hence could not achieve any long-term benefit. To address this issue, a novel effort is made to achieve long-term benefits by implementing the Lean concepts in Indian SMEs by deploying a research instrument to measure performance. This paper has been designed to analyse the performance of SMEs in India by a newly developed Model, namely System for Small Medium Implementing Lean Enterprises (S-SMILE). The model comprises of twelve critical success factors (CSFs) with 71 variables, which are analysed and validated through the perception of managerial executives. The results showed that the twelve CSFs of the S-SMILE model have a structural relationship and support the implementation towards attaining the performance.
Keywords: S-Smile Model; lean manufacturing; critical success factors; SMEs.
Factors influencing the choice of marketing channel by rice producers: Evidence from the Mekong Delta Region, Vietnam
by Tien D. N. Ho, Prof. John K. M. Kuwornu, Takuji W. Tsusaka, Loc T. Nguyen, Avishek Datta
Abstract: The study examined the factors influencing the choice of rice marketing channel (MCC) by smallholder rice producers in the Mekong Delta Region (MDR) of Vietnam. A multistage sampling technique was used to collect data from 405 rice producers in the three provinces, namely, Can Tho, Dong Thap and Tien Giang. The empirical results of a logit regression model reveal that distance, asset endowment, farm size, market quantity, price of rice, contract farming, organization, access to credit, extension service, access to transportation, and storage facilities influenced farmers choice of MCC. The findings suggest that policies should aim at setting up the appropriate floor price, improving transport infrastructure, access to formal credit, input subsidy, supporting farmer organizations and extension services to help these farmers to improve their livelihoods.
Keywords: Logit regression; marketing channel; Mekong delta; rice; Vietnam.
Value Chain Analysis of Organic Food Industry: A Worldwide Review of Empirical Evidences
by Krishan Boora, Varuni Sharma
Abstract: This study aims to furnish a broad overview of the growing literature available worldwide on VCA (Value Chain Analysis) and its innovative techniques to strengthen the Organic food Industry and various factors affecting the organic food sector by exploring the empirical studies of past 15 years (2004-2019). The research approach used for the analysis of review studies is a qualitative approach. The findings of previous studies have been analyzed with a decisive and interpretive approach to previous studies. The variables taken for the analysis were objectives; research methodology and significant results/conclusion of previous empirical studies have been investigated. The analysis of the previous empirical studies depicted increasing demand for organic food worldwide including India. These studies put in front the Value Chain related concepts to make organic food business more productive and profitable. The findings also discussed the common challenges faced by the sector like lack of expertise in the smooth flow of Value Chain, the high price of organic food, lack of awareness of organic food between common mass, lack of policies and incentives for high growth trajectory.
Keywords: Value Chain Analysis; Organic Food.
Pricing Decision in a Multi-Period Hub Location Problem under Uncertainty: A Mathematical Model
by Mahdieh Zare Bidoki, Masoud Rahiminezhad Galankashi, Mostafa Setak
Abstract: This research develops a multi-period mathematical model to address the Hub Covering Location Problem (HCLP) considering competitiveness, pricing, demand uncertainty and congestion. Although the HCLP is investigated in previous studies, concurrent investigation of these issues is less investigated. To fill the gap, this study models the HCLP with regard to aforementioned issues to maritime transportation problem. Particularly, it is assumed that the products are perishable and should be delivered in a specific time, the hubs capacities are limited, and they face congestion if the demand exceeds a defined value. A M/M/C queue system is applied to deal with the congestion. A non-linear mathematical model is proposed and a medium-sized case study is applied to address the concerns of this research. According to the results, customers are highly interested in competitive criteria of price and delivery time. Based on sensitivity analysis, price significantly affects the competitiveness and capability of absorbing new customers.
Keywords: Hub Covering Location Problem; Pricing; Uncertainty; Stochastic Demand.
Effective green supply chain practices for business performance improvement of Thai electronics industry
by Busaba Phruksaphanrat, Kankanit Kamolkittiwong
Abstract: This study aims to identify the potential correlation between green supply chain management (GSCM) practices and business performance of firms in the Thai electronics industry to find the effective GSCM practices. Structured questionnaires were sent by mail to 67 of the electronics firms in Thailand that have joined the Green Industry Project. Canonical correlation analysis was used to test hypotheses. GSCM practices lead to improvement of business performance in the following aspects: Environmental, competitive, operational and economic performances. The effective GSCM practices that have strong influence on business performances are clean manufacturing technologies, ISO 14001, and commitment to GSCM of senior managers. This study presents GSCM practices and business performances that cover all activities in the supply chain. Moreover, it aims to explore the relationships between GSCM practices and main business performances. Effective GSCM practices for Thai electronics industry are shown. Guidelines for improvement of each business performance are presented.
Keywords: Green Supply Chain Management (GSCM); Business Performance; Electronics Industry; Green Industry; Canonical correlation analysis.
Crowdsourcing-based business model for online customer service: A case study
by Jukka Majava, Kaisa Hyvärinen
Abstract: Crowdsourcing has changed how people work and created new types of business models. Crowdsourcing can be utilised by outsourcing small organisational tasks that are usually performed in-house or building the whole business concept upon an unknown crowd. This paper presents how a literature based framework can be applied to develop an innovative crowdsourcing based business model in online customer service. The relevant literature on crowdsourcing, business models, and customer services was reviewed. The business model of a start up firm was analysed in the empirical study. The key elements, challenges, and benefits of a crowdsourcing-based online customer service business were defined. The key challenges of the model include service quality, service availability, crowd motivation, client attraction, a balance between the crowd and client numbers, and platform-related challenges. The main advantages of the model include cost-effectiveness, an industry-specific crowd, service availability, competitive service quality, human touch, and a lower price point.
Keywords: business model; crowdsourcing; customer services; innovation; value creation.
A fuzzy multi-objective model for a sustainable end of life vehicle reverse logistic network design: Two meta-heuristic algorithm
by Fatemeh Harsaj, Yousef Aghaeipour, Mahboubeh Sadeghpoor, Yadollah Rajaee
Abstract: In recent years, the concept of reverse logistics has been paid attention by many researchers due to the importance of environmental regulations as well as the importance of utilizing from worn-out goods for re-production. In the process of reverse logistics, a systematic manufacturer accepts items such as recycling, reproduction, and land filling for products that reach the endpoint of consumption. It is very necessary to address the issue of reverse logistics network and its effective management and guidance. According to the studies, taking into account the uncertainty conditions is one of the most effective factors of modeling the reverse logistics network. In reverse logistics, parameters such as the capacity of centers, demand, cost, and quality are uncertain. With considering the above-mentioned issues, the purpose of the present study was to develop a mixed fuzzy integer linear planning model for reverse logistics network of End of life (EOL) vehicles to minimize the cost of establishing and constructing facilities, as well as minimizing transportation and material costs between facilities, minimizing environmental impacts, and maximizing social responsibility with taking into account the uncertainty conditions and the multi-product mode. Due to the NP-HARD nature of the understudied problem, the Whale optimization algorithm (WOA) and NSGA-II algorithm were used to solve the model, which results of these two modes were comprised based on quality indicators, dispersion and uniformity and solution time of the problem.
Keywords: Sustainable; Reverse logistic; End of life vehicles; Multi-objective model; Fuzzy theory.
Analysis of Frozen Food Adoption by Consumer in Uttarakhand, a State of India: An Inferential Statistics Approach
by Madhu Arora, Rupesh Kumar, Neeraj Anand
Abstract: The aim of paper is to outline socio-economic profile of consumer readily adopting frozen food products and identify relevant factors influencing consumer adoption. Chi-square test for independence has been employed to examine the relationships and determine the degree of association between the adoption and demographic variables/factors. The binary logistic regression model permits evaluation of dependence of the dichotomous variable on the identified factors. Chi-square test of independence revealed significant association between demographic variables and the dependent variable, consumer adoption. The analysis carried out has shown that all the variables have significant impact on consumer adoption. Data collected online from the respondents during the period of COVID lock-down, could be indicative of a shift in consumer perception related to frozen food products. Further research in this area can focus on the barriers to consumer adoption for frozen food products, especially in India.
Keywords: Consumer perception; Unhealthy; Frozen food; Consumer Adoption; Consumer convenience.
Application of Integrated Lean Six Sigma Quality Healthcare System Practice in Indian Healthcare
by Sathish Kumar K, Venkatesh Babu R, Paranitharan K.P
Abstract: Nowadays, the integration of continuous improvement methodologies has gained momentum and international fame on improving healthcare performance. The study investigates the impact on the integration of lean, six sigma (DMAIC, and TQM concept in the Indian healthcare sector to improve healthcare performance and maintain its sustainability. The present model of integrated lean six sigma quality healthcare system (ILSSQHS) model was developed under ten critical success factors through extant literature review and from experts opinion. This study was carried out by distributing 500 questionnaires to different NABH accredited hospitals, out of which 148 (29.6%) useful responses were received. Data were analysed by performing reliability analysis, confirmatory factor analysis, and regression analysis using SPSS version 23. Among the ten critical success factors, leadership management commitment is higher in rank and healthcare operational evaluation seems lower in rank in the private healthcare sector. The result revealed that all CSFs are found a significant and positive association with ILSSQHS practice as perceived by Indian healthcare managers. The present study discusses the methods, theoretical as well as the practical implications of the ILSSQHS approach. The finding reveals useful guidelines and incites to improve the performance level of the Indian healthcare sector.
Keywords: Healthcare; Hospitals; Lean; Six Sigma; Quality; India; ILSSQHS Model.
Six Sigma and Market Performance in Jordanian Hospitals
by Najm Najm
Abstract: This study sought to provide a broad review of the evolution of the Six Sigma as a strategic vision and an effective methodology for improving quality and reducing defect in the growing context interest in its applications in the industrial and service fields. In the applied section, the study attempted to determine the effect of the Six Sigma dimensions (strategic vision, DMAIC cycle, patient orientation, hospital commitment to employees) on two criteria for market performance (competitiveness and hospital reputation) in Jordanian hospitals. The effect of the mediator variable (acceptance of failure) in hospitals on the relationship between the Six Sigma and competitiveness was also investigated. The results confirmed that there is a positive impact of the three dimensions of the Six Sigma (strategic vision, patient orientation, and hospital commitment to employees) on the competitiveness and reputation of the company. The DMAIC cycle did not seem to have a significant effect. Moreover, acceptance of failure as a mediator variable had no significant effect on the relationship between the Six Sigma and competitiveness.
Keywords: Six Sigma; DMAIC; customer orientation; commitment to employee; competitiveness and reputation.
Migrant Workers and Their Roles in the Korean Economy and Society
by Sang Chul Park
Abstract: Koreas rapid economic development is mainly based on export oriented industrial policy and technological innovation policy supported by an efficient human resource management and a strong education system. Since Korean industries have become globalized, migrant workers started to arrive in Korean labor market. It increased from 300,000 in 2000 to 1,409,000 in 2017. Most of migrant workers are working in SMEs as irregular jobs with low wages although their wages in Korea are much higher than their home countries. This paper focuses on roles of migrant workers in the Korean economy and society. Moreover, it analyses the fundamental reasons why migrant workers pour to Korea in such a short period and which impacts of the migrant workers have created on the Korean economy and society. Last, but not least, it compares situation and working condition of Korean migrant workers with other migrant workers in advanced countries.
Keywords: Economic development; globalization; migrant worker; conflict; job security.
Problems and Prospect of Rural poultry farm in Bhutan. A study from a value chain perspective
by Elangbam Haridev Singh, Madan Gurung, Dawa Drakpa
Abstract: The objective of this study was to explore the challenges of poultry farmers from the perspective of the value chain in the Chukha district. A total of 33 farmers, and 7 retailers were issued a questionnaire to study the challenges faced by farmers in three states of value chain; backward, main activity and forward chain. The study found that climatic condition and the high price of chicks as the main problems in backward value chain exorbitant feed price and bird diseases in the case of main activity and cost of packaging and poor storage system are the main challenges in the forward value chain. The findings have important implications for government and local district policymakers in developing the proper policy and allows policymakers to focus on a specific area of the poultry value chain where corrective initiative can be taken by the government which will contribute to district economic development.
Keywords: rural enterprise; poultry farm; value chain; Bhutan.
Inter-firm software development: the case of mobile work machines
by Antti Rantala, Helena Kortelainen, Josu Takala
Abstract: Software plays an essential role in the transition towards automation and autonomous work machines. The role of small specialist companies has increased, as even large original equipment manufacturers do not have the necessary skills and know-how to develop complex products without external help. This study investigated companies views in the mobile work machine domain concerning inter-firm software development. The objective of the study was to explore companies willingness to co-develop software with other companies in contractual alliances or joint ventures and to identify the main benefits, risks and enablers concerning inter-firm software development. The results indicate that the companies were interested in inter-firm software development via both governance models, but contractual alliances were a more preferable model among the interviewees. The key benefits of inter-firm software development were the possibilities to increase the speed and creativity of the development processes while sharing development costs. The main risks in inter-firm software development were the possibility of becoming too dependent on the partner and the risk of failing to create enough value to cover the collaboration costs. The key enablers for inter-firm software development included mutual trust, open knowledge sharing and precisely determined contracts about development costs and revenue sharing.
Keywords: Collaboration; Inter-Firm; Software Development; Joint Venture; Contractual alliance; Strategic Alliance Governance model; Business Model; Cooperation; Mobile Work Machines.
Factors Determining Building Customers Loyalty to organic agricultural products in Bangkok, Thailand
by Thun Chaitorn, Shahab E. Saqib
Abstract: This study aims to determine factors for building customers loyalty to organic agricultural products in Bangkok, Thailand. Data were collected from 400 senior customers- who were above 55 years of age and were consuming organic agricultural products. The data were collected through a questionnaire survey. Structural Equation Modelling (SEM) was used for determining the factors for customer loyalty. Findings show that service marketing strategy, customer relationship management, and customer satisfaction were important factors determining customers loyalty. In customer satisfaction, the most important factor for building customer loyalty for organic agricultural products in Bangkok is regarding the convenience received, and customer relationship management regarding educating for relationship building. These two factors have the greatest influence on the customers positive attitude. This is the first study that has been conducted in the text of Bangkok a metropolitan city of Thailand. The findings suggest that farmers should be trained to produce organic products according to international standards as well as knowledge on marketing strategies that can build customers loyalty.
Keywords: marketing strategy; customer relationship management; customer satisfaction; customer loyalty; organic agricultural product; Thailand.
Inventory Management Strategies of Manufacturing Industries: Evidence from Food Processing Firms in Ghana
by Richard Kofi Opoku
Abstract: The paper purposely describes the common inventory management strategies adopted by food processing firms in Ghana. The paper specifically investigated the key inventory management strategies adopted by the firms and their contributions to inventory management. It also examines the key strategy adopted by these firms during inventory management. The paper adopts the quantitative approach, descriptive design and is backed by the theory of constraints. It collects primary data through structured questionnaires from 104 food processing firms in Ghana. The study found the Economic Order Quantity and Strategic Supplier Partnership strategies as the most preferred strategies for managing inventories by food processing firms in Ghana. Data collected are analysed using descriptive statistical tools and the results reveal that food processing firms in Ghana consider the Economic Order Quantity (EOQ) as the most-adopted strategy during inventory management; followed by Strategic Supplier Partnership (SSP) strategy. The findings are geared toward informing policies and practices associated with inventory management while expanding previous studies on inventory management strategies by focusing on the food processing industry in Ghana. The results would specifically facilitate the adoption and development of relevant inventory management strategies of the food processing industries and consequently promote firm performance, competitiveness, and overall economic development of Ghana.
Keywords: Inventory Management Strategies; Just-In-Time; Economic Order Quantity; Strategic Supplier Partnership; Vendor Managed Inventory; Activity based Costing.
On the Relevance of Parties in Service Environment to Customer Citizenship Behaviors: Evidence from Hotels in Vietnam
by Thi Bich Hanh Tran, Quy Duong Pham, Huong Ly Nguyen, Thu Tra Nguyen, Gia Bao Le, Tuan Anh Pham
Abstract: The relationship, communication and interaction between customers and businesses especially in services field have always been the most interesting and never ending topic for researchers and economists to study. Understanding about the customer behavior is the key to success. The interaction from business to customer is always visible and easy to observe, but on the other hand, how customers interact back to business is still an indistinctive concept. It was only until recently, more attention is put into study to form theoretical understanding of customer constructive bundle of positive, voluntary, helpful behaviors that are beneficial to business services overall which is named Customer Citizenship Behavior (CCB). Realizing that current research is not specific and detailed enough on the topic, the research aims at exploring the factors affecting customer citizenship behavior in Vietnam hospitality business field. The data were collected from Vietnamese customers with a survey. The results show that factors pertaining to four key players in service environments including other customers citizenship behavior (other customers), employee credibility (service staff), customer orientation of service firm (service firm), and customers social identity (customer per se) are significantly linked to both customer citizenship behavior toward other customers and customer citizenship behavior toward firm. The results of this study offers valuable contributions to both theoretical and practical field.
Keywords: Customer citizenship behaviors; employee credibility; social identity; customer orientation; other customer citizenship behaviors.
The impact of Additive Manufacturing on production location decisions: a case study in Belgium and the Netherlands
by Joren Nevens, Lucass Pauwels, Ysabel Nauwelaerts
Abstract: This study investigates how the implementation of Additive Manufacturing (AM) in production affects companies production location decisions, a research gap present in the literature on AM and Global Value Chains. Based on qualitative case studies at five AM manufacturing companies active in Belgium or the Netherlands we conclude that the implementation of AM for production activities increases the importance of access to technical knowledge, agglomeration economies, within-firm knowledge spillovers and customer proximity in production location decisions. On the other hand, AM decreases the importance of access to intermediate inputs and does not affect the importance of labor costs by shifting labor from production to pre- and post-production activities, rather than substituting it. Today, AMs overall effect on location decisions is still relatively small since the technology is mostly used as a complementary production method next to traditional manufacturing, rather than as a substitute. Nevertheless the recent pandemic crisis showed companies the risks of being dependent on supplies from remote areas, which may accelerate the implementation of AM in the future.
Keywords: additive manufacturing; 3D printing; production; location; agglomeration economies; knowledge spillovers; global value chains.
Green production-distribution planning under competition in a brand-differentiated supply chain
by Mahsa Zokaee, Mahdi Mokhtarzadeh, Masoud Rabbani
Abstract: This research proposes the development of a green IPD planning under non-competitive and competitive market conditions, aiming at minimizing costs, maximizing service level, and minimizing carbon emissions. For the competitive market model, a green competition and a Stackelberg competition between brand-differentiated manufacturers are considered. A real case study is investigated to evaluate the application of these models. The numerical results express that competitions enhance both financial and environmental performance of supply chains and ameliorates supply of products to retailers. Moreover, this study supports informed decision-making by supply chain authorities to improve inventory control and replenishment to address customer demand sensitivity.
Keywords: Supply chain; Green supply chain management; Integrated production-distribution planning; Competition; Brand-differentiated competition.
CONTRACT FARMING AS A MARKETING STRATEGY TO IMPROVE THE POULTRY AGRIBUSINESS IN GHANA
by Richard Bannor
Abstract: The local poultry subsector of Ghana is burdened with production and marketing challenges rendering it non-competitive against imported chicken products. One of the suggested strategies to solve this challenge is contract farming. However, empirical studies on contract farming have been widely researched in the crop subsector, with limited studies in the poultry subsector. This study, therefore, examined the choice of contract farming as a marketing outlet among poultry agripreneurs. The Propensity Score Matching technique was used to analyse the impact of contract farming on the total value of sales. The results indicate that several demographic, marketing, production and institutional characteristics influenced contract farming choice. Beyond this, contract farming was revealed to have a significant impact on the total value of sales of broiler products. The study recommends collaboration between the Ministry of Food and Agriculture and local radio stations in the study area to provide farmers with market information on the prices and demand for layers, broilers and eggs in neighbouring markets to ascertain their decision to choose contract farming or otherwise.
Keywords: Poultry; chicken; contract; marketing outlet; principal-agent problem.
Commitments and Communication Boost Competitive Advantage via GSCM on Fuel Retail Industry in Indonesia
by Hari Purnomo, Ina Primiana Syinar, Fani Cahyandito, Diana Sari
Abstract: The fuel retail industry in Indonesia has grown rapidly with the enactment of UU No. 22 of 2001. Increasing competitive advantage could be conducted by implementing green supply chain management (GSCM) which was related to commitment and communication. This is a descriptive and associative study by using quantitative approach. We used structural equation model (SEM) equation with a total sample of 640 respondents. Research results showed several things. First, commitment and communication had a positive effect on GSCM. Second, commitment and communication had a positive effect on competitive advantage. Third, commitment and communication had influence on competitive advantage through GSCM. The results of the study showed that competitive advantage in the fuel retail industry could be increased by implementing GSCM. The GSCM needed to be supported by commitment and communication. Commitment was the foundation of GSCM, while communication ensured GSCM meets customer needs and desires.
Keywords: commitment; communication; green supply chain management; GSCM; competitive advantage; fuel retail industry.